[HISTORY: Adopted by the City Council of the City of Galax 4-25-1988.[1] Amendments noted where applicable.]
This chapter shall be known and may be cited as the "Galax Enterprise
Zone Ordinance."
In accordance with Title 59.1, Chapter 22, § 59.1-270 et seq.,
1950 Code of Virginia, as amended, and the resultant declaration of the Governor
of the Commonwealth of Virginia designating a portion of the City of Galax
as an Enterprise Zone, it is the purpose of this chapter to stimulate business
and industrial growth within the area designated as the Galax Enterprise Zone
by means of tax incentives, tax credits, fee waivers, governmental programs
and other initiatives established to promote such growth.
The boundaries of the Galax Enterprise Zone are as follows: Beginning
at the intersection of Jefferson and U. S. Route 58 — 221,
continue eastwardly along the center line of U. S. Route 58 to the intersection
of U. S. Route 58 and Grant Street; thence eastwardly along the center line
of Grant Street until the intersection of Grant Street and Givens Street;
thence southwardly along the center line of Givens Street until the intersection
of Givens Street and Shaw Street; thence eastwardly along the center line
of Shaw Street until the intersection of Shaw street and Barger Street; thence
southwardly along the center line of Barger Street until the intersection
of Barger Street and Mary Street; thence westwardly along the center line
of Mary Street until the intersection of Mary Street and Givens Street; thence
southwardly along the center line of Givens Street until the intersection
of Givens Street and Poplar Knob Road; thence eastwardly along the center
line of Poplar Knob Road until the intersection of Poplar Knob Road and Oak
Street; thence southwardly along the center line of Oak Street until the intersection
of Oak Street and Brickyard Road; thence westwardly along the center line
of Brickyard Road until the intersection of Brickyard Road and Lineberry Road;
thence southwardly along the center line of Lineberry Road until the intersection
of Lineberry Road and Main Street; thence northwardly along the center line
of Main Street until the intersection of Main Street and Calhoun Street; thence
westwardly along the center line of Calhoun Street until the intersection
of Calhoun Street and Monroe Street; thence northwardly along the center line
of Monroe Street until the intersection of Monroe Street and Webster Street;
thence eastwardly along the center line of Webster Street until the intersection
of Webster Street and Jefferson Street; thence northwardly along the center
line of Jefferson Street until the intersection of Jefferson Street and U.
S. Route 58 — 221, the beginning point. See enclosed map of
zone.[1]
[1]
Editor's Note: This map is on file in the office of the City
Manager.
A.
For the purposes of this section, any residential real
estate which is located within the designated Enterprise Zone shall be deemed
to have been substantially rehabilitated when a structure which is no less
than 40 years of age has been so improved as to increase the assessed value
of the structure by no less than 40% without increasing the total square footage
of such structure by more than 15%. A real estate tax exemption is hereby
authorized for such qualified property in an amount equal to the increase
in the assessed value resulting from the rehabilitation of the residential
real estate as determined by the City Commissioner of the Revenue. This one-hundred-percent
tax exemption on the increased valuation resulting from rehabilitation shall
be applicable for five consecutive years, commencing on January 1 of the year
following completion of the rehabilitation. After the first five years of
the exemption at 100% of the increased valuation, the exemption shall decline
to 80% of the increased valuation the sixth year, 60% of the increased valuation
the seventh year, 40% of the increased valuation the eighth year and 20% of
the increased valuation the ninth year. No exemptions on the increased valuation
shall be allowed after the ninth year.
B.
The owner of such rehabilitated residential real estate
shall be required to file an application requesting the exemption provided
by this section with the City Commissioner of the Revenue not later than 30
days after obtaining a building permit for said rehabilitation. Said property
owner shall be required to regularly pay his/her real estate tax by the due
date or face forfeiture of the real estate tax exemption. Said property owner
shall also be required to pay a one-time fee of $20 to the City of Galax for
processing such application requesting the exemption.
C.
Nothing in this section shall be construed as to permit
the City Commissioner of the Revenue to list upon the land book any reduced
value due to the exemption provided herein.
D.
Where the rehabilitation is achieved through demolition
or replacement of an existing structure, the exemption provided herein shall
not apply when any structure demolished is a registered Virginia landmark
or is determined by the Virginia Historic Landmarks Commission to contribute
to the significance of a registered historic district.
E.
The exemption provided herein shall terminate immediately
upon the conveyance of fee simple ownership of the subject property.
A.
For the purpose of this section, any rehabilitated commercial
or industrial real estate which is located within the designated Enterprise
Zone shall be deemed to have been substantially rehabilitated when a structure
which is no less than 40 years of age has been so improved as to increase
the assessed value of the structure by no less than 60% without increasing
the total square footage of such structure by more than 15%. A real estate
tax exemption is hereby authorized for such qualified property in an amount
equal to the increase in the assessed value resulting from the rehabilitation
of the commercial or industrial real estate as determined by the City Commissioner
of the Revenue. This One-hundred-percent tax exemption on the increased valuation
resulting from rehabilitation shall be applicable for five consecutive years
commencing on January 1 of the year following completion of the rehabilitation.
After the first five years of the exemption at 100% of the increased valuation,
the exemption shall decline to 80% of the increased valuation the sixth year,
60% of the increased valuation the seventh year, 40% of the increased valuation
the eighth year and 20% of the increased valuation the ninth year. No exemption
on the increased valuation shall be allowed after the ninth year.
B.
The owner of such rehabilitated commercial or industrial
real estate shall be required to file an application requesting the tax exemption
provided by this section with the City Commissioner of the Revenue not later
than 30 days after obtaining the building permit for said rehabilitation.
Said property owner shall be required to regularly pay his/her real estate
tax by the due date or face forfeiture of the real estate tax exemption. Said
property owner shall also be required to pay a fee of $20 to the City of Galax
for processing such application requesting the exemption.
C.
Nothing in this section shall be construed as to permit
the City Commissioner of the Revenue to list upon the land book any reduced
value due to the exemption provided herein.
D.
Where the rehabilitation is achieved through demolition
or replacement of an existing structure, the exemption provided herein shall
not apply when any structure demolished is a registered Virginia landmark
or is determined by the Virginia Historic Landmarks Commission to contribute
to the significance of a registered historic district.
E.
The exemption provided herein shall terminate immediately
upon the conveyance of fee simple ownership of the subject property.
A.
For this section, any retail business, wholesale business
and professional occupational business which is located or locating within
the designated Enterprise Zone shall be eligible to receive a local business
license tax credit when said business has increased the number of or created
new full-time, year-round jobs. The local tax credit shall be proportional
to the amount of new full-time, year-round jobs created according to the following:
for the creation of 25 or more new jobs, the business firm shall receive a
75% license tax credit for its first year of eligibility and a 50% tax credit
for its second through fifth year of eligibility; for the creation of 10 to
24 new jobs, the business firm shall receive a 60% license tax credit for
its first year of eligibility and a 40% license tax credit for its second
through fifth year of eligibility; for the creation of four to nine new jobs,
the business firm shall receive a 50% tax credit for its first year of eligibility
and a 30% tax credit for its second through fifth year of eligibility.
B.
The eligible business firm must maintain such full-time
jobs year round and agree to submit to monitoring by the City's Enterprise
Zone Administrator to assure compliance. If, at any time and for whatever
purpose, the business firm eliminates or reduces the number of jobs below
its eligibility level, the license tax credit will be suspended. Any retail
business, wholesale business or professional occupation can qualify for the
license tax credit only once during the designated twenty-year term of the
Enterprise Zone. The tax credits are available to an eligible business firm
for a maximum period of five years.
C.
An existing qualifying business firm shall be required
to file an application requesting the tax credit provided by this section
with the City Commissioner of the Revenue not less than 30 days prior to the
deadline for payment of the business license. A new qualifying business firm
shall be required to file an application requesting the tax credit at the
time of application for a business license. Said business firm shall be required
to regularly pay its annual business license tax by the due date or face forfeiture
of the license tax credit. Said business firm shall also be required to pay
a one-time fee of $20 to the City of Galax for processing such application
requesting the credit.
A.
For this section, any business firm which is located
or locating within the designated Enterprise Zone shall be eligible to receive
a local water and sewer rate credit when said business firm has increased
the number of or created new full-time, year-round jobs. The local tax credit
shall be proportional to the number of new full-time, year-round jobs created
according to the following: for the creation of 50 or more new jobs, the business
firm shall receive a 40% water and sewer rate credit for its first and second
year of eligibility and a 20% water and sewer rate credit for its third, fourth
and fifth year of eligibility; for the creation of 25 to 49 new jobs, the
business firm shall receive a 35% water and sewer rate credit for its first
and second year of eligibility and a 20% water and sewer rate credit for its
third, fourth and fifth year of eligibility; for the creation of three to
24 new jobs, the business firm shall receive a 30% water and sewer rate credit
for its first and second year of eligibility and a 20% water and sewer rate
credit for its third, fourth and fifth year of eligibility.
B.
This rate credit only applies to a quarterly volume of
use of up to a limit of 50,000 gallons. All usage over 50,000 gallons per
quarter will be subject to the standard rate.
C.
The eligible business firm must maintain such full-time
jobs year round and agree to submit to monitoring by the City's Enterprise
Zone Administrator to assure compliance. If, at any time and for whatever
purpose, the business firm eliminates or reduces the number of jobs below
its eligibility level, the water and sewer rate credit will be suspended permanently.
Any business firm can qualify for the water and sewer rate credit only once
during the designated twenty-year term of the Enterprise Zone. The rate credits
are available to an eligible business firm for a maximum period of five years.
D.
An existing or new qualifying business firm shall be
required to file an application requesting the water and sewer rate credit
with the Director of Finance at the time the firm becomes eligible. Said business
firm shall be required to regularly pay its water and sewer bills by the due
date or face forfeiture of the water and sewer credit. Said business firm
shall also be required to pay a one-time fee of $20 to process such application
requesting the rate credit.
Any business firm located or locating within the designated Enterprise
Zone shall be deemed eligible for a waiver of all building permit fees for
both new construction and renovation. A permit is still needed and BOCA Code
compliance required, but no fee will be charged.
Any new business or industry locating in the zone is eligible for a
waiver of 1/2 of all costs associated with the connection of said business
or industry to municipal water- and sewer lines.
